CCI imposes fine of Rs 54 crore on the BCCI for abuse of dominant position AMSS briefs Senior Advocate Aryama Sundaram for the BCCI

The Competition Commission of India (CCI) found the Board for Control of Cricket in India (BCCI) guilty of abuse of dominant position in connection with the Indian Premier League. In its order passed today, the CCI has imposed a fine of Rs. 54.24 crore on the BCCI and has also asked the BCCI to develop an internal regulatory mechanism..The complaint, filed by cricket fan S. Singh Barmi, alleges irregularities in the manner in which the BCCI conducted the IPL, more specifically the grant of contractual rights (including franchise rights) related to the IPL..The CCI went on to hold that not only does the BCCI fall under the definition of an “enterprise” as used in the Competition Act, 2002 but that the BCCI enjoys a “dominant position in the market for organising private professional league cricket events” in the country..The CCI went on to observe that there is no clear separation between the regulatory and the commercial roles of the BCCI. By agreeing not to grant sanction to any other professional domestic cricket league during the period of the media rights agreement, the BCCI used its regulatory powers to reach a commercial agreement..Holding the BCCI guilty of abuse of dominant position, the CCI imposed a fine of Rs.54.24 crore on the BCCI. The CCI also directed the BCCI to set up an “internal, effective control system” to ensure a separation between the BCCI’s regulatory and commercial activities..The CCI however did not examine the contention that the BCCI had deliberately sabotaged the Indian Cricket League; the CCI refused to go into the matter since at the time of the formation and subsequent closure of the ICL, the provisions of Section 3 and 4 of the Act were not notified. The CCI also did not examine the allegations relating to the granting of franchises..Amarchand Mangaldas Mumbai’s Competition Law Partner Nisha Kaur Uberoi along with Bharat Budholia briefed Senior Advocate, Aryama Sundaram for the BCCI. BCCI’s lawyer, Raghu Raman told Bar & Bench that the BCCI shall be filing an appeal against this decision.